CRUDE OIL US crude oil inventories posted a decrease of 1.1 MMBbl last week, according to the weekly EIA report. Gasoline inventories decreased 1.6 MMBbl while distillate inventories increased 1.4 MMBbl. The total petroleum inventories showed an increase of 2.5 MMBbl. US crude oil production increased 100 MBbl/d last week per EIA. Crude oil imports were down 0.9 MMBbl/d, to an average of 7.6 MMBbl/d, versus the week prior. Prices tried to keep the bullish momentum from the previous week rolling forward, but the concerns about slowing global economies and the slowing’s effect on demand took the starch from the momentum trade out. Bullish momentum had been based on the geopolitical tensions between the US and Iran, and this week the market will have to address the seizure of an Iranian tanker by the United Kingdom. The Iranian position acknowledged the origin of the oil and that the tanker took the circuitous route around Africa rather than through the Suez Canal (requiring it to offload some of the oil prior to reaching the Canal). The UK stated that the tanker was destined for Syria; therefore, it was violating the EU sanctions on Syria. The seizure event prevented further declines at the end… continue reading
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Source: CTRM Center